Chamber cautions council to spend wisely

Chamber confident about Wellington’s future but cautions
council to spend wisely

Wellington has a huge and
dynamic future but to ensure the city reaches its potential
it must grasp the many opportunities that are beginning to
present themselves, says Wellington Employers’ Chamber of
Commerce President John Milford.

He was making the
Chamber’s oral submission to the City Council’s Draft
Annual Plan.

“Looking ahead to what we can do, the
Chamber has some ‘bottom lines’ for future projects and
proposals, both those in the draft annual plan and those
signalled for future consideration as part of the priority
growth agenda’s ‘8 big ideas’,” he told councillors
tonight.

“With continued uncertainty about future
liabilities such as earthquake strengthening of council
buildings, legal action from leaky homes, and as the region
awaits the outcome from the Local Government Commission’s
reorganisation proposal, it is important that expenditure
within the council’s operations is well considered.”

He said the council must continue to operate within
financial prudence as the economic recovery begins to be
cemented in.

“This is not to say the Chamber is
against future investment or consideration of future project
expenditure.

“But we should be well informed and
thoroughly convinced about adding to the city’s debt –
with a plan on how we pay for it.”

He said that
for all project proposals, the Chamber would need to
see:

An investment strategy, with a robust business
case, including a convincing cost benefit analysis and
return on investment, with funding in collaboration with
commercial partners.A repayment strategy, with a solid
commitment to service and pay down the debt quickly.

“Regardless of the overall balance sheet or the
council’s credit rating, servicing our debt and paying it
down needs to be made a No 1 priority.

“Given the
upcoming amalgamation possibilities, we must also be clear
on how each project will benefit the entire region.

“The council needs to ensure the city has what it
needs, to generate business activity, to make our city
regionally, nationally, and internationally attractive and
vibrant.

“The council must be absolutely focused
on growth – because it’s business and investment that
are going to get the city humming.

“This should
not be a single focus about growing the rate base – it’s
about being a competitive city again.”

He also
repeated the Chamber’s concerns around the council’s
decision to adopt the Living Wage.

“The Chamber is
very concerned with the method in which the council made
this decision.

“Though a living wage is
well-intentioned, and we all want everyone to share in the
rewards of economic growth, what’s not clear is how this
is going to help the city grow so everyone can enjoy higher
wages.

“The Living Wage incurs additional
operating cost on the city and ratepayers which is not in
the council’s mandate. Minimum wage and employee income
subsidies are a central government issue for which
individuals and business contribute through tax.

“As a business organisation we question whether the
adoption of the living wage was a prudent business
decision.”

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